Overall AIR gets a fundamental rating of 5 out of 10. We evaluated AIR against 73 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of AIR get a neutral evaluation. Nothing too spectacular is happening here. AIR is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year AIR was profitable.
AIR had a positive operating cash flow in the past year.
In the past 5 years AIR has always been profitable.
Each year in the past 5 years AIR had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of 2.90%, AIR perfoms like the industry average, outperforming 56.16% of the companies in the same industry.
With a Return On Equity value of 6.03%, AIR perfoms like the industry average, outperforming 56.16% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.32%, AIR is doing good in the industry, outperforming 71.23% of the companies in the same industry.
AIR had an Average Return On Invested Capital over the past 3 years of 7.36%. This is in line with the industry average of 8.56%.
The last Return On Invested Capital (8.32%) for AIR is above the 3 year average (7.36%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	2.9%
ROE	6.03%
ROIC	8.32%

ROA(3y)2.32%

ROA(5y)2.84%

ROE(3y)4.33%

ROE(5y)4.83%

ROIC(3y)7.36%

ROIC(5y)6.95%

1.3 Margins

AIR has a Profit Margin (3.17%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AIR has grown nicely.
AIR's Operating Margin of 9.40% is in line compared to the rest of the industry. AIR outperforms 58.90% of its industry peers.
In the last couple of years the Operating Margin of AIR has grown nicely.
Looking at the Gross Margin, with a value of 19.29%, AIR is doing worse than 64.38% of the companies in the same industry.
In the last couple of years the Gross Margin of AIR has grown nicely.

		Industry Rank	Sector Rank
OM	9.4%
PM (TTM)	3.17%
GM	19.29%

OM growth 3Y14.65%

OM growth 5Y34.25%

PM growth 3Y-52.86%

PM growth 5Y16.72%

GM growth 3Y3.32%

GM growth 5Y7.87%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AIR is destroying value.
Compared to 1 year ago, AIR has more shares outstanding
The number of shares outstanding for AIR has been increased compared to 5 years ago.
AIR has a better debt/assets ratio than last year.

2.2 Solvency

AIR has an Altman-Z score of 3.52. This indicates that AIR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AIR (3.52) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.61 indicates that AIR is somewhat dependend on debt financing.
AIR has a worse Debt to Equity ratio (0.61) than 65.75% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.61
Debt/FCF	N/A
Altman-Z	3.52

ROIC/WACC0.82

WACC10.19%

2.3 Liquidity

A Current Ratio of 2.84 indicates that AIR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.84, AIR is in line with its industry, outperforming 56.16% of the companies in the same industry.
AIR has a Quick Ratio of 1.31. This is a normal value and indicates that AIR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.31, AIR is in line with its industry, outperforming 43.84% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.84
Quick Ratio	1.31

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

AIR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.72%, which is quite impressive.
Measured over the past years, AIR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.75% on average per year.
Looking at the last year, AIR shows a quite strong growth in Revenue. The Revenue has grown by 15.40% in the last year.
AIR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.06% yearly.

EPS 1Y (TTM)26.72%

EPS 3Y17.57%

EPS 5Y12.75%

EPS Q2Q%31.11%

Revenue 1Y (TTM)15.4%

Revenue growth 3Y15.17%

Revenue growth 5Y6.06%

Sales Q2Q%15.92%

3.2 Future

AIR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.19% yearly.
Based on estimates for the next years, AIR will show a small growth in Revenue. The Revenue will grow by 1.07% on average per year.

EPS Next Y22.08%

EPS Next 2Y19.47%

EPS Next 3Y18.19%

EPS Next 5YN/A

Revenue Next Year18.09%

Revenue Next 2Y14.21%

Revenue Next 3Y11.37%

Revenue Next 5Y1.07%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 23.92, AIR is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of AIR indicates a rather cheap valuation: AIR is cheaper than 90.41% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AIR to the average of the S&P500 Index (28.87), we can say AIR is valued inline with the index average.
The Price/Forward Earnings ratio is 18.95, which indicates a rather expensive current valuation of AIR.
95.89% of the companies in the same industry are more expensive than AIR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AIR to the average of the S&P500 Index (25.96), we can say AIR is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	23.92
Fwd PE	18.95

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIR indicates a rather cheap valuation: AIR is cheaper than 90.41% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	14.88

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AIR has a very decent profitability rating, which may justify a higher PE ratio.
AIR's earnings are expected to grow with 18.19% in the coming years. This may justify a more expensive valuation.